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Paid family and medical leave may soon prove costly for small businesses under WA House bill聽

Mar 11, 2025, 2:15 PM | Updated: Mar 17, 2025, 11:43 am

Washington paid family leave...

Small businesses will play a bigger role in funding Washington's paid family leave program. (Unsplash)

(Unsplash)

The vote is sparking concerns among small business owners about rising costs. The Washington State House of Representatives passed a bill Tuesday that expands worker protections under the state鈥檚 paid family and medical leave (PFML) program.

At the heart of the debate is whether businesses with fewer than 50 employees can afford to pay into the state鈥檚 system.

In a vote split along party lines, House Bill 1213 passed 55-41, with three Democrats joining all Republicans in opposition.听 Businesses with fewer than 50 employees would still be exempt from paying the employer portion of the PFML premium, although employees will still be required to contributed through payroll deductions.

The bill also mandates that small businesses restore employees to their positions after family or medical leave鈥攕omething only larger businesses were required to do before. In practical terms, that means a five-person company must now hold a job open for up to 18 weeks while an employee is on leave.

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Paid family and medical leave is seen as a 鈥榯wo-tiered system鈥

Representative Liz Berry (D-Seattle), the bill鈥檚 primary sponsor, framed the change as a matter of fairness.

鈥淩ight now, we have a two-tiered system鈥攐ne built for our most privileged workers and one for everybody else,鈥 Berry said, citing a showing that while 70% of high-wage workers enjoy job protection, only 16% of low-wage workers do.

To offset costs for small businesses, the bill expands grant funding options. These include a $3,000 reimbursement for hiring a temporary worker while an employee is on leave and a separate grant covering employer-paid health care costs during an employee鈥檚 leave.

Supporters argue these measures will help ease the financial burden, but critics say they don鈥檛 go far enough.

More from MyNorthwest: WA House pushes through controversial public health bill after heated late-night debate

Concerns over cost and feasibility

Representative Suzanne Schmidt (R-Spokane Valley) warned that the new requirements could strain small businesses.

鈥淭here was a reason why we had the 50-employee threshold鈥攂ecause we didn鈥檛 believe small businesses could financially afford the burden,鈥 Schmidt said.

During the floor debate, Republican lawmakers introduced amendments aimed at softening the financial impact on small employers, including a proposal to delay implementation and another to allow small businesses to opt out of job restoration guarantees. Each amendment failed.

Representative Jim Walsh (R-Aberdeen) didn鈥檛 mince words, calling HB 1213 a “bad bill” and urging a no vote. He also warned that expanding the program could put the insurance fund that supports it at risk of insolvency.

鈥淩ather than focusing on fixing that looming crisis, we鈥檙e considering a massive expansion of the program that鈥檚 looking at massive red ink,鈥 Walsh argued.

More from MyNorthwest: Washington House passes divisive bill to ease misdemeanor dismissals

A personal plea

On the other side, Representative Beth Doglio (D-Olympia) shared a personal story about being unable to take paid leave when her second child was born.

鈥淭here are people in our state who are fearful to take advantage of this benefit that they have paid into鈥攁nd that they have a right to鈥攁nd it鈥檚 not right,鈥 she said.

With House approval secured, the bill now moves to the Senate, where it is expected to face continued debate.

Matt Markovich is the 成人X站 Newsradio political analyst. Follow him on聽.听

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Paid family and medical leave may soon prove costly for small businesses under WA House bill聽